JEDDAH: Saudi Arabian shares rose to the highest level in almost eight months, led by petrochemicals and builders, as oil surged to its highest year-end price since 2007 and investors start the year with expectations companies will post encouraging quarterly earnings. Saudi Basic Industries Corp., the world's largest petrochemical maker, Saudi Industrial Investment Group and Arabian Pipes Co. paced the rally. The 146-company Tadawul All Share Index rose 0.51 percent to 6,654.4 points, the highest since May 15. “The price of oil shifted into high gear this past quarter and that has pushed investors to bet big on fattened oil company profits,” said Amro Halwani, a trader at Shuaa Capital PSC in Riyadh. “People are pinning in their hopes on growth in corporate earnings as it is starting to look more and more entrenched.” Oil prices rode out 2010 at highs last seen more than two years ago in New York, buoyed by rising hopes for stronger global demand. New York's main contract, light sweet crude for February, closed at $91.38 a barrel, up a hefty $1.54 from Thursday. In London, Brent North Sea crude for delivery in February settled $1.66 higher at $94.75 a barrel. Over the course of the year, the New York contract has climbed 15 percent and Brent soared 22 percent SABIC advanced 0.2 percent to SR105. Saudi Industrial gained 2.5 percent to SR22.3, the highest since May 17, Yanbu National Petrochemicals Co. rose 0.8 percent to SR48. “Investors also took in some major buying activity in Arabian Pipes following some good news on the name, and that's feeding the sector with positive momentum,” said Halwani. Arabian Pipes surged 9.9 percent to SR30, the highest since July 11, after the Saudi maker of steel pipes won a SR315 million ($84 million) contract from GS Engineering & Construction Corp. and owned 100 percent of Arabian Yadong for Packaging Co. Ltd. Yanbu Cement rose as much as 2.8 percent to SR44, the highest since May 11. Mobile Telecommunication Co. Saudi Arabia (Zain) rose as much as 1.3 percent, the most since Dec. 27, to SR7.9. Saudi Steel Pipe Co. rose as much as 5 percent, the most since Dec. 14, to SR25.30.
